Rate bounces back as close-in stops drive trade; remarks from ECB encourage a round of short-covering. If rate can hold above the 1.4750 area on the close good chance of follow-on buying to end the week.

EX reversal overnight suggest tie to buy a new dip under the 1.4700 handle (?). Oil firmer likely to help upside, this is a buying opp in my view but we need to wait through US data this morning.

Traders suggesting that the rate is vulnerable to a short squeeze. Market is heavily short now so expect a rally. Aggressive traders can continue buying this dip for a return to resistance.

Rate continues to track Cable and vice-versa. Now that stops are cleared a rotation higher is coming. US data this week likely to be unfriendly so be ready for whipsaw.

EURO/USD Daily

Resistance 3:  1.4880/1.4900
Resistance 2:  1.4800
Resistance 1:  1.4760/70
Latest New York:  1.4723
Support 1:  1.4570
Support 2:  1.4550
Support 3:  1.4520/30

Data due Thursday: All times EASTERN (-4 GMT)

3:55am EUR German Unemployment Change
4:00am EUR M3 Money Supply y/y

Forex Analysis by Jason Alan Jankovsky at ForexPros.com. For more details about Forex Trading and Tips for decent earnings through Forex Trading, Please check http://www.forexpros.com